The general rule for paying lower rates on your workers compensation insurance: If you take care of your employees, your insurer will take care of you.
Here’s some more information on how to do that.
Keep It Safe
A safe work environment is the foundation to lower rates on your workers compensation insurance. Your work environment should be safe, and it should be provably safe. That is, you should have a written safety program, and you should provide your insurer with a copy.
Some states have rigorous requirements on companies' safety programs, and you can refer to these requirements while writing a program of your own. Otherwise, look up local guidelines and bring in a consultant to help you develop a safety program.
A safe work environment helps on two fronts: Fewer injuries means fewer claims and lower rates. Your insurer will often lower your rates simply for creating a safe environment and putting it in writing.
Keep Your Workplace Substance-Free
If your team likes to kick back with a drink after a hard day's work, do it at the bar across the street. A zero-tolerance policy on drugs and alcohol in the workplace can go a long way towards getting your insurance rates a little lower.
Develop A Return-To-Work Program
A return-to-work program allows an injured employee to get back to work as soon as possible — even if that just means part-time or limited duties. This has several benefits. An obvious one is that you can close your workers comp case sooner. Another benefit is that your employee won't feel left out in the cold while in recovery.
Being out on injury is not a paid vacation. It leaves employees with a lot of time to worry about their future and feel like they're not fulfilling a purpose. Getting them back to work lets them know that there's always a place for them.
One last thing to consider: If you're running a very small business, you might want to ask yourself whether you need full time employees. For the time being, it might be wiser to hire contractors and freelancers until you can comfortably afford to provide your hires with a competitive insurance package.
Also Read: Workers Compensation and Fault